Commerzbank Aktiengesellschaft FI Sells 358,061 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• Commerzbank Aktiengesellschaft FI cut its PayPal stake by 96.5% in the first quarter, selling 358,061 shares and ending with 12,966 shares worth about $586,000.
• PayPal’s latest quarterly results were stronger than expected, with EPS of $1.34 and revenue of $8.35 billion, both topping analyst estimates and showing 7.2% year-over-year revenue growth.
• Investor attention remains focused on takeover speculation after reports that PayPal rejected a $53 billion bid, while analysts are mostly cautious and rate the stock a consensus Hold.

Commerzbank Aktiengesellschaft FI lessened its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 96.5% during the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 12,966 shares of the credit services provider's stock after selling 358,061 shares during the quarter. Commerzbank Aktiengesellschaft FI's holdings in PayPal were worth $586,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in PYPL. Bard Associates Inc. bought a new stake in shares of PayPal in the 4th quarter worth approximately $25,000. Caitong International Asset Management Co. Ltd increased its position in PayPal by 15,233.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider's stock valued at $27,000 after buying an additional 457 shares in the last quarter. Safe Harbor Fiduciary LLC purchased a new position in PayPal during the fourth quarter valued at $28,000. Kelleher Financial Advisors purchased a new position in PayPal during the third quarter valued at $30,000. Finally, Advocate Investing Services LLC bought a new stake in PayPal in the fourth quarter worth $30,000. Institutional investors own 68.32% of the company's stock.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Reports that PayPal rejected a $53 billion takeover bid because the board believes the company is worth more are fueling takeover premium speculation for PayPal (PYPL). PayPal Rejected a $53 Billion Takeover Bid: Is the Stock Undervalued?
• Positive Sentiment: Some commentary says PayPal could still be undervalued despite the bid, citing strategic assets like Venmo, PYUSD, and improving operating trends. PayPal Says a $53 Billion Takeover Offer from Stripe Undervalues It. How to Play PYPL Stock Here.
• Neutral Sentiment: An analyst remained on the sidelines despite the takeover chatter, suggesting investors are still waiting for clearer evidence that a deal or turnaround will materialize. Analyst Stays on Sidelines for PYPL Despite Stripe, Advent Buyout Offer
• Neutral Sentiment: PayPal also faces a near-term earnings backdrop that some previews say could be softer, which may limit upside if the company does not deliver a strong quarter. Earnings Preview: Paypal (PYPL) Q2 Earnings Expected to Decline
• Negative Sentiment: Longer-term coverage still highlights slowing growth and stronger competition, which is why the stock remains vulnerable if the takeover narrative fades. How PayPal went from Wall Street favorite to unwilling merger target

Insider Buying and Selling

In related news, insider Suzan Kereere sold 3,379 shares of the business's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total transaction of $144,587.41. Following the completion of the sale, the insider directly owned 30,983 shares in the company, valued at approximately $1,325,762.57. The trade was a 9.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of the stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $49.46, for a total transaction of $66,128.02. Following the completion of the transaction, the chief accounting officer owned 1,586 shares in the company, valued at $78,443.56. The trade was a 45.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 20,612 shares of company stock valued at $966,623. 0.63% of the stock is owned by insiders.

PayPal Stock Down 0.6%

PayPal stock opened at $55.51 on Thursday. The stock has a market cap of $48.97 billion, a PE ratio of 10.41, a price-to-earnings-growth ratio of 1.39 and a beta of 1.33. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.26 and a current ratio of 1.26. PayPal Holdings, Inc. has a one year low of $38.46 and a one year high of $79.50. The stock has a fifty day moving average of $45.25 and a 200 day moving average of $47.09.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its earnings results on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share for the quarter, beating analysts' consensus estimates of $1.27 by $0.07. The company had revenue of $8.35 billion for the quarter, compared to the consensus estimate of $8.05 billion. PayPal had a return on equity of 25.02% and a net margin of 15.00%.PayPal's revenue was up 7.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.33 earnings per share. As a group, sell-side analysts predict that PayPal Holdings, Inc. will post 5.32 EPS for the current year.

PayPal Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Thursday, June 4th were issued a $0.14 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. PayPal's dividend payout ratio (DPR) is presently 10.51%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. William Blair reissued a "market perform" rating on shares of PayPal in a research note on Wednesday, July 15th. Piper Sandler decreased their target price on PayPal from $46.00 to $42.00 and set a "neutral" rating for the company in a research report on Monday, June 29th. Citigroup upped their target price on shares of PayPal from $42.00 to $48.00 and gave the company a "neutral" rating in a research note on Wednesday, April 8th. Barclays raised shares of PayPal from an "underweight" rating to an "equal weight" rating and raised their price target for the company from $42.00 to $55.00 in a report on Thursday, July 16th. Finally, Loop Capital started coverage on shares of PayPal in a report on Tuesday, March 31st. They set a "hold" rating and a $46.00 price objective for the company. Seven research analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $54.61.

About PayPal

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal's platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal's portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree's developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.

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